Jared v Clements [1902] 2 Ch D 399

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Facts
  • Clement finds out that the property he’s trying to buy has an equitable mortgage from Jared
  • Totally unbeknownst to Jared, and outside his duties as a solicitor, Parr (Jared and Clements’ solicitor) fraudulently creates a document stating that the mortgage has been paid off
  • Clements buys the property
Interest
  • Whose interest prevails? The equitable mortgage or the later legal interest?
Held
  • Had they not searched the bankruptcy files initially, they would never have known about the equitable mortgage as it wasn’t a reasonable search
  • However, in doing so Clements lost the ability to be “without notice” despite the actions of Parr

-- Download Jared v Clements [1902] 2 Ch D 399 as PDF --


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